Keep in mind that while there are common milestones in most home sales, there’s no such thing as a “routine” real estate transaction. Each one usually has a few twists or turns – some little and some not so little. We’re also assuming you gotten past the “nibbling” stage – reading the paper, maybe going to an open house or two – and you’re ready to get serious. Step 1: Go shopping for a mortgage. It may seem backwards to shop for a mortgage before you shop for the house, but there are several reasons for doing this. First, you’ll find our how much you can borrow, which has a lot to do with how much house you can buy. Make sure you know how much you can comfortably handle. It’s okay to be a little stretched, at least at first. Most people “grow into” their mortgage payments. But it’s also very easy to get in over your head. Make sure you get a federal bank to make sure you are qualified for that payment. Shopping for a mortgage will also help if you can get “pre-approved” for the amount you’d like to borrow. This means the lender has looked over your credit and financial statement and agreed to lend you the money. Sellers like pre-approved buyers because there’s less risk the deal won’t go through. Step 2: Find out what houses are selling for in your area – and how much you’ll have to pay for what you’re looking. Look at selling prices – not asking prices. You can get these from a real estate agent or from your local paper or town/county government. When you find a house roughly like the one you want, as for three “comparables” – recent sales of houses that are roughly your target house. Step 3: Come up with a down payment – usually 3-20 percent of that price. (This is the hard part.) You may not have to put that much down – some programs will go for 10 percent or even zero. But these loans are riskier and usually more expensive. Besides, without a down payment, you don’t own even a piece of the house. The bank owns the whole thing. Step 4: Find an agent. You don’t have to have an agent, but the real estate industry has pretty much locked up the supply of houses in the hands of agents. Check on the Web for your state’s real estate licensing board to make sure they’re registered and don’t have any complaints or suspensions. Step 5: Now find your new home! Sounds easier than it is, but with the help of 247preapproval.com , we will get you on your way to owning your own home. The American dream!
